South Korea’s foreign exchange reserves rose to $428.82 billion in October, up from $422.02 billion. This increase shows strong growth in the country’s financial reserves. Globally, major currencies are fluctuating. The NZD/USD fell below 0.5650 because New Zealand’s unemployment rate hit a nine-year high. The GBP/USD also dropped to new lows, while USD/JPY fell near 153.50 as worries about a US government shutdown mounted. US President Donald Trump reported progress with Swiss officials on tariffs. A US-China agreement includes formal fentanyl regulations and tariff cuts. The EUR/USD remains low around 1.1480. Gold prices have slipped to three-day lows of about $3,930, and Ethereum’s price dropped below $3,500 due to ETF outflows. In the financial world, DeFi platforms are facing scrutiny after a $120 million hack of Balancer. This information carries risks and uncertainties. It is for informational purposes only and is not financial advice. Readers should research thoroughly before investing, as any risks, losses, and costs are the responsibility of investors. The market is experiencing tension, leading to opportunities for volatility trades. Positive news from the US-China trade deal and progress on Swiss tariffs is offset by fears of a US government shutdown, pressuring the dollar. Strategies like straddles or strangles on major indices may be effective in the weeks ahead. The Japanese yen is gaining strength as a safe-haven asset. The USD/JPY has dropped toward 153.50, despite positive trade news. This is driven by shutdown risks, which the CBO estimates could cut 0.2% from Q4 GDP for each week it lasts. Buying JPY call options or selling USD/JPY futures could capitalize on this trend, especially if Congress does not make progress on the budget. The British pound is clearly in a downtrend, presenting an opportunity to profit from its weakness. The recent drop follows UK inflation data showing only 2.1%, which was below expectations and reduces the chance of a Bank of England rate hike before mid-2026. Put options on GBP/USD or bearish futures positions seem like solid strategies. Likewise, the New Zealand dollar appears weak after its unemployment rate rose to a nine-year high of 5.2%. This effectively rules out rate hikes for now, a view supported by dovish comments from the RBNZ governor. We see potential in shorting NZD/USD, as the currency lacks positive support. The Bank of Japan’s increasingly hawkish stance strengthens the yen further. Minutes from their meetings indicate a readiness to hike rates, and Japan’s core inflation has stayed above 2% for six consecutive months. This policy divergence from other central banks suggests a long-term bullish outlook for the yen against the euro and pound. Gold is retreating from recent highs near $3,930, indicating some traders are shifting from safe assets to riskier ones after the trade deals. In the crypto market, sentiment is negative, with Ethereum dipping below $3,500 after institutional crypto ETFs saw over $500 million in outflows last week. The recent $120 million hack of a DeFi platform adds to the uncertainty, making bearish derivative plays on crypto-related assets appealing.

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